Buying your first home is both an exciting and challenging journey. On one hand, you’re entering the property market and securing a place to call your own. On the other, you’re doing so at a time when Australian housing affordability is stretched to its limits. Home prices have skyrocketed over 1,400% since the late 1970s, far outpacing income growth. Nationally, the median house price is around $913,000 as of mid-2025, and in Melbourne it’s about $952,000 – roughly 8 times the median household income. Servicing a new mortgage on a typical home could consume close to 50% of a family’s income at current prices and interest rates. It’s no surprise the average age of first-home buyers has climbed to 37 (up from mid-20s in the 1970s) as Australians take longer to save and prepare for ownership.

Yet, it’s not all gloom. Government incentives and schemes are available to help first-time buyers enter the market sooner, even with less than a 20% deposit. Technology is making the search and purchase process more transparent and accessible than ever – for example, platforms like SaleMate are designed to empower buyers with information and even enable digital transactions. Armed with the latest facts and a solid game plan, you can join the ranks of new homeowners despite the headwinds. This guide will walk you through each step: getting your finances ready, leveraging first-home buyer programs, finding the right property, navigating purchase and settlement, and managing your new home. Let’s dive in.

Buying your first home has never been easy, but 2025 presents some unique challenges. Housing affordability in Australia is at historic lows. By early 2025, the price-to-income ratio reached about 8.0 nationally, meaning the typical home costs eight times the annual household income. For context, in the 1980s this ratio was closer to 3 or 4. The time to save a 20% deposit has blown out as well – what took around 4 years in the 1980s now takes 10+ years on average. Factors driving this include decades of price growth outpacing wages, undersupply of housing, and strong demand (fueled by population growth and investment trends).

High interest rates add to the challenge. After a period of record-low rates in the early 2020s, the Reserve Bank’s cash rate now sits at 3.85% (August 2025), and many variable mortgage rates are in the 5–6% range. Higher rates mean higher monthly repayments, reducing how much first-home buyers can borrow. It also means the mortgage stress threshold is easier to hit – financial advisors often warn not to spend more than 30% of your income on housing, but as noted, many would-be buyers face scenarios of 40–50% of income just to pay the loan. This requires careful budgeting and perhaps rethinking expectations (for example, considering an apartment or unit instead of a house). In fact, units remain an attractive option for first-home buyers due to their relative affordability, with national median unit prices ($690k) significantly lower than house prices.

Another hurdle is intense competition and low supply. Australia’s housing supply hasn’t kept up with demand in recent years. Vacancy rates for rentals are extremely low (around 1% in many cities), and while that directly impacts renters, it also signals how tight the market is for all housing. First-home buyers often find themselves up against seasoned investors or upsizers with more equity. This means being prepared is crucial – you’ll want your finances in order and pre-approval ready (more on that below) so you can act quickly when an opportunity arises. Despite these challenges, thousands of Australians are still buying their first homes each year. By understanding the landscape and leveraging available support, you can improve your chances of success.

Before falling in love with a property, get your financial ducks in a row. The cornerstone is your deposit. Traditionally, a 20% deposit is recommended – not only does this give you equity and lower your loan amount, it also lets you avoid Lenders Mortgage Insurance (LMI), which banks require if you borrow more than 80% of the property’s value. For example, a $600,000 home would need a $120,000 deposit to reach 20%. If that sounds steep, don’t panic: many first-home buyers put down less. In fact, government programs now allow some to buy with as little as 5% or even 2% deposit (we’ll cover those in the next section). However, the bigger your deposit, the better – it means smaller repayments and buffer against interest rate rises. Set a clear savings goal and timeline. According to Moneysmart (an Australian Government resource), aiming for 20% plus extra to cover buying costs (stamp duty, legal fees, etc.) is ideal, but if that’s unattainable, look into low-deposit schemes that can bridge the gap.

Start by creating a budget (or tightening your existing one) to maximize your savings. Scrutinize your expenses for areas to cut back – channel those funds into a high-interest savings account or an offset account if you already have a savings-friendly mortgage set up. Many first-home buyers also boost their deposit through the First Home Super Saver Scheme (FHSSS), which lets you funnel voluntary contributions into your superannuation (up to $50,000 total can be withdrawn later for a first home purchase) with potential tax benefits. This can accelerate savings if you have the discipline to not touch those contributions until you’re ready to buy.

Polish your credit profile in parallel. Lenders will examine your credit history and current debts. Pay down credit card balances and avoid taking on new loans or buy-now-pay-later debts in the lead-up to your mortgage application. A strong credit score can help you secure a lower interest rate on your home loan. It’s also wise to get a mortgage pre-approval from a bank or lender before you start house hunting. Pre-approval (also called conditional approval) involves the lender checking your income, expenses, and credit to confirm how much they’re willing to lend you. It doesn’t guarantee the loan, but it gives you a firm budget range and positions you as a serious buyer. Most pre-approvals last 3–6 months. Importantly, be realistic and stress-test your budget: calculate your loan repayments not just at current interest rates but also a couple of percentage points higher (e.g. could you afford it if rates hit 7%?). This ensures you don’t overextend yourself. As a rule of thumb, don’t max out what the bank says you can borrow if it would leave you with no breathing room. You’ll thank yourself later whenever rates or expenses rise.

Lastly, remember to factor in upfront costs beyond the deposit. These can include stamp duty (which, unless exempt as a first-home buyer, can be tens of thousands of dollars), conveyancing/legal fees, building and pest inspections, loan application or offset account fees, and moving costs. It’s better to over-budget for purchase costs so you’re not caught short at settlement. Many first-timers forget things like mortgage registration fees or utility connection fees in their excitement. By sorting out your finances early – savings, credit, pre-approval, and cost budgeting – you set a strong foundation for a smooth buying process.

One of the best parts about being a first-home buyer in Australia is access to special incentives, grants, and schemes to help you get into your home sooner. These programs can save you money and reduce the upfront burden. Here are the key ones to know:

• First Home Owner Grant (FHOG): This is a one-off grant provided by state governments for eligible first-time buyers. The amount and criteria vary by state. For example, in Victoria the FHOG is $10,000 for buying or building a new home (not an established property) valued up to $750,000. Some regional areas offer a higher grant (e.g. $20,000 in certain parts of Victoria during specific periods) to encourage building outside metro centers. To qualify, you usually must occupy the home as your primary residence for at least 6-12 months and of course be a true first-home buyer (never owned property before). While $10k might seem small relative to home prices, every bit helps – that sum could cover your conveyancing, moving costs and a chunk of furniture, or slightly reduce your loan principal to save interest. Think of it as the government chipping in on your deposit.
• Stamp Duty (Transfer Duty) Concessions: State governments also provide relief on stamp duty for first-home buyers, which is a significant upfront tax on property purchases. In Victoria, first-home buyers pay no stamp duty on homes valued under $600,000, and discounted duty on homes up to $750,000. Other states have similar schemes (e.g. New South Wales currently exempts duty below $800k for first homes). This can save you tens of thousands: on a $600k house in Vic, the stamp duty would normally be around $31,000 – waived completely if you’re eligible. It’s crucial to check your state’s threshold and apply for the concession or exemption when you lodge transfer papers. Note that some states require you to live in the property for a period (often at least 6-12 months) to retain the benefit, and investment purchases usually don’t get exemptions. Stamp duty concessions can significantly lower the cash you need at settlement.
• First Home Guarantee (5% Deposit Scheme): The federal government’s First Home Guarantee (formerly called the First Home Loan Deposit Scheme) is a game-changer for those with limited deposit. Under this program, eligible first-home buyers can purchase with just 5% deposit, and the government guarantees the remaining 15% of the typical 20% deposit to the lender – letting you avoid costly Lenders Mortgage Insurance. In practical terms, if you have, say, $30k saved (5% of a $600k home), you may be able to buy without waiting to save the full $120k (20%). The scheme has had limits on the number of spots per year (e.g. 50,000 places) and eligibility criteria like income caps (around $125k for singles or $200k for couples) and property price caps that vary by city/region. Big news: from **1 October 2025, the First Home Guarantee is being massively expanded – with unlimited places and no income caps, plus higher property price limits to reflect market changes. In Victoria, the price cap will rise from $800k to $950k in Melbourne and regional centers. This expansion means any first-home buyer who meets basic criteria (Australian citizen/permanent resident, minimum 5% genuine savings, etc.) can access the scheme, regardless of income, and there’s no competition for limited slots. It essentially opens the door for all first-timers to buy with 5% down if they choose. Keep in mind, you still need to service the larger loan (95% of the price) and the government isn’t giving you money – it’s a guarantee to the bank – but it saves you the LMI premium (which can be $10k-$30k on typical first-home prices) and speeds up your purchase timeline by years in many cases.
• Help to Buy (Shared Equity Scheme): Another federal initiative, Help to Buy is a new shared equity program launching in 2024-2025. It allows the government to co-purchase up to 40% of a new home (or 30% of an existing home) with you. In essence, the government provides part of the purchase price upfront, so you only need to finance the remainder. For example, on an $800,000 new house, the government might contribute $320k (40%) and you cover $480k via your deposit + mortgage. You then own the home jointly with the government – you don’t pay rent on their share, but when you eventually sell (or if you want to buy out their stake later), the government will reclaim their proportional share of the value. To be eligible, there are income limits (currently around $90,000 for singles or $120,000 for couples, though the 2025 Budget allocated funds to increase these caps), and you still need a minimum deposit (as low as 2% of the purchase price). The scheme aims to assist 40,000 households over four years. For those who qualify, Help to Buy can dramatically reduce your mortgage size and monthly repayments – but remember, you are also giving up some equity growth to the government partner. It’s a trade-off worth considering if you’re struggling with borrowing capacity or repayments at current interest rates.
• State Shared-Equity and Low-Deposit Programs: In addition to the federal schemes, some states have their own initiatives. For instance, Victoria’s Homebuyer Fund (VHF) is a shared equity scheme where the state government contributes up to 25% of the purchase price in exchange for an equivalent share of the property. You need a 5% deposit, and over time you buy out the state’s share (by refinancing or using savings, or at sale). This program has income and property value limits, but it’s another pathway to reduce upfront and loan costs for first-home buyers in Victoria. Other states like WA and Queensland have programs like low-deposit government-backed loans or shared equity for public housing tenants. Also, some private sector initiatives (e.g. BuyAssist) partner with developers to provide equity contributions for low-income buyers. Be sure to research what’s available in your state or city – a “toolkit” of grants and schemes might apply to your situation and could collectively save you a substantial amount. A great starting point is the federal government’s first home buyer website and your state revenue office’s page for first-home buyer assistance.

In summary, don’t leave money on the table. These grants and schemes are designed to help you, and many first-home buyers successfully combine multiple incentives (for example, using the 5% Deposit Guarantee and getting a stamp duty exemption and taking the $10k grant). The paperwork for each can seem daunting, but lenders and conveyancers are usually familiar with them – and the effort is worth the reward. Just be mindful of any long-term implications (like equity sharing) and ensure you meet the conditions (such as living in the property for the required period). If you’re unsure about eligibility, use official online tools or speak with a mortgage broker. Taking advantage of these programs can significantly lower the barriers to owning your first home in Australia’s pricey market.

With finances and incentives sorted, you can move on to the fun (and sometimes nerve-wracking) part: house hunting. As a first-home buyer, it pays to be both realistic and resourceful in your search. Here are some tips to help you find the right property without unnecessary stress:

• Define Your Priorities: Before you start scrolling through listings, make a list of “must-haves” and “nice-to-haves.” Consider factors like location, property type, size, and condition. As a first home, you might not get everything on your wishlist, so know what you’re willing to compromise on. For example, is a longer commute acceptable if it means you can afford a house instead of an apartment? Do you need three bedrooms, or will two suffice for the next few years? Having a clear picture of your requirements will help you filter options and avoid decision paralysis.
• Research the Market: Knowledge is power in real estate. Delve into recent sold prices in your target areas, attend some open for inspections even before you’re ready to bid (just to gauge the market), and track how quickly properties are selling. In 2025, many Australian markets (including Victoria) have seen prices start rising again after a dip in 2023, so staying on top of trends is important. Use online portals like realestate.com.au, Domain, and SaleMate to see listing prices and sale histories. Check if your state has a public property sales database or if any local agents publish quarterly reports. This will prevent you from low-balling in a hot market or overpaying in a cooler one. Also research neighborhoods for their amenities, future infrastructure plans, school zones (if relevant), and livability. Sometimes an adjacent suburb to a hot spot can offer better value with only minor trade-offs.
• Leverage Technology and Platforms: These days, about 95% of buyers start their property search online, which means you have a wealth of tools at your fingertips. Property listing platforms allow you to set up alerts for new listings that meet your criteria. Dive into the property details: look at the photos, floor plans, and even virtual tours if available. Some listings provide suburb profiles with demographics and price trends. Beyond the major portals, keep an eye on SaleMate’s platform, which is geared toward transparency and community insights. SaleMate, for instance, requires all listings to display a price (no more cryptic “Contact Agent”), and features open comment sections where buyers and locals can discuss properties. This kind of openness can be incredibly helpful for a first-time buyer trying to educate themselves. SaleMate also lets you make offers and negotiate digitally on the platform, which can simplify the process. Even if you use a traditional route, don’t underestimate newer PropTech tools – they can help you compare properties, calculate commute times, and even estimate expenses (many banks have apps or calculators for loan repayments and upfront costs per property).
• Attend Inspections (and Inspect Thoroughly): When you find a place you like, always see it in person if possible. Photos can hide flaws or exaggerate space. At inspections, look past the styling – cosmetic issues like paint color can be changed, but you’re more concerned about layout, structural soundness, and potential costly problems. Check for signs of damp (water stains, moldy smell), test light switches and taps, open and close windows and doors (to see if frames are warped), and note any cracks in walls or ceilings. Don’t be afraid to ask the real estate agent questions. A useful trick is to visit at different times of day if you’re very keen on a property – a neighborhood might feel quiet on a Saturday afternoon but be loud or congested on a weekday morning. If the property is an apartment or unit, read the strata/body corporate notes for any red flags (upcoming major repairs, high quarterly fees, etc.). Once you’re serious, get a professional building and pest inspection. It typically costs a few hundred dollars, but it’s a crucial insurance to avoid nasty surprises like termite damage or structural issues. Many first-home buyers are so eager that they skip this to save money – don’t! A house is the biggest purchase of your life; spending 0.1% of its value on an inspection is well worth it.
• Be Auction-Ready (for Victorian Buyers): In Victoria (especially Melbourne), auctions are a common method of sale. This can be intimidating for first-timers because auctions are unconditional – meaning if you’re the highest bidder above reserve, you win the contract immediately (no cooling-off period, no “subject to finance/inspection” clauses; you’re expected to have finance sorted and done all checks beforehand). To navigate this, attend a few auctions as a spectator first to see how they unfold. Observe the pacing, how bidders jump in, and how auctioneers work. When you plan to bid, set a hard limit based on what you can afford (and what you believe the property is worth). It helps to bring someone experienced or even engage a buyer’s agent to bid on your behalf if you’re nervous. Make sure your finance is pre-approved and your deposit (often 10% for auctions) is ready – typically you’ll need to pay the deposit on the spot or the next business day. If you’re successful, you’ll sign the contract immediately at the auction. If you’re not comfortable with this, you might focus on private sales instead, where you can negotiate a price and include conditions like finance or inspection clauses. However, many of the best properties in sought-after areas will go to auction, so being prepared for that process widens your options.
• Negotiating Private Sales: For private treaty sales (where the property is listed for sale at a price or price range), remember that the asking price is often just a starting point. Research comparable sales and don’t hesitate to make an offer below the asking price if recent data supports it – but be reasonable, as an overly low offer might not be taken seriously by the seller. If the market is hot, there might be competition even without an auction, leading to a “multiple offer” scenario. In that case, put your best foot forward or consider adding sweeteners like a flexible settlement date to entice the vendor. Always ensure any offer you make is “subject to finance and building/pest inspection” (unless you’ve already done the inspection and are fully approved) – this gives you an exit if something goes awry. In Victoria, when buying by private sale, you usually have a three-business-day cooling-off period after signing (unless you waived it or bought at auction) during which you can back out with minimal penalty. Use that time to finalize any due diligence.

Throughout the house hunting phase, keep a level head. It’s easy to get emotionally attached to a home and overextend out of fear of missing out (the famous FOMO). Stick to your budget and criteria as much as possible. It can help to remind yourself that your first home likely won’t be your forever home; it’s a stepping stone. You can always aim to upgrade down the track when your financial position is stronger. By being patient, doing your homework, and using the tools and support available, you’ll position yourself to find a property that meets your needs without regretting the purchase later.

Once you’ve found “the one” and successfully negotiated a purchase (or won at auction), the journey isn’t over – but you’re in the home stretch. It’s time to go through contracts, payments, and the settlement process to officially take ownership. Here’s what to expect:

Signing the Contract: In a private sale, when buyer and seller agree on price and terms, you’ll sign a contract of sale (and likely pay a small holding deposit, e.g. $1,000). The contract will include details like the property address, price, deposit amount, any conditions (finance, inspections, etc.), inclusions (like appliances, light fittings that stay), and the settlement date. Review it carefully – this is where your conveyancer or solicitor is invaluable. Always have a legal professional look over the contract and the property’s title documents before you sign (or during the cooling-off period at latest) to check for any unusual clauses or restrictions (caveats, easements, covenants on the title). In some states, the vendor provides a Section 32 or disclosure statement with important info – read this thoroughly (your conveyancer can help translate the legalese). If you’re buying at auction, the contract is unconditional and you’ll sign it immediately after winning. In that case, ensure you (or your lawyer) reviewed the contract prior to auction day, because you won’t get to negotiate terms afterwards. Once signed by both parties and any cooling-off period lapses, it becomes a binding contract. You’ll typically need to pay the balance of the deposit (often 10% of purchase price, minus any holding deposit already paid) shortly after signing – this goes into the real estate agent’s trust account.

Settlement Period: The time between contract signing and final settlement is usually anywhere from 30 to 90 days (occasionally longer or shorter if agreed). The specific timeline will be stated in the contract. During this period, a few critical things happen:

• Finalizing your loan: You’ll take your signed contract to your lender so they can proceed to unconditional approval of your home loan. Even if you had pre-approval, the bank now needs to value the property and tick all the boxes to issue a formal loan offer. Stay in close contact with your mortgage broker or bank and provide any additional documents they ask for (updated payslips, etc.) promptly to avoid delays.
• Conveyancing work: Your solicitor/conveyancer will conduct searches on the property title, check for any debts or caveats, ensure rates and taxes are up to date, and prepare transfer documents. They liaise with the seller’s conveyancer and your bank to arrange settlement.
• Insurance: In some states (e.g. QLD) the risk passes to the buyer once contracts are exchanged, whereas in others (e.g. VIC) the risk stays with the seller until settlement. Regardless, it’s wise to arrange building insurance from the contract date to be safe (especially if you’re buying a house). Lenders will often require evidence of insurance before settlement. If it’s a strata property, the building insurance is usually covered by strata fees, but you might want contents insurance from day one.
• Meeting any conditions: If your purchase was conditional (e.g. “subject to finance” or “subject to building inspection”), you’ll need to satisfy those conditions by the deadlines in the contract. For finance, that means getting your formal approval; for inspections, it means having the inspection done and deciding you’re satisfied. If an inspection uncovers serious issues, you can negotiate repairs or price reductions with the seller, or withdraw if it’s unsalvageable (depending on contract terms). Just be aware, most issues are fixable/negotiable, so don’t panic if the report shows a dozen minor defects – that’s common.

Preparing for Settlement Day: Settlement is the legal process where the property ownership is transferred to you and you pay the remaining balance. In practical terms, leading up to settlement you should:

• Ensure funds are ready: Know how much money you need to contribute on settlement (beyond your loan). Your conveyancer will give you a Statement of Adjustments showing exactly what to pay, which factors in things like your deposit paid, plus or minus adjustments for council rates, water rates, etc. For example, if the seller already paid property taxes beyond settlement date, you reimburse them for the portion after you take ownership. Have your deposit funds, FHOG (if applicable), etc., arranged to cover this. Often, you’ll need to transfer your share to the conveyancer’s trust account a day or two before settlement.
• Check documents: You’ll sign the mortgage documents for the bank and any First Home Guarantee or Help to Buy agreements if using those. Return everything well before the deadline. Your conveyancer will also have you sign the transfer of land document that officially changes ownership.
• Final inspection: In the week before settlement (often the day before or morning of), you are entitled to a pre-settlement inspection of the property. This is your chance to ensure the property is in the same condition as when sold and that any agreed repairs or inclusions are as expected. Walk through with the contract’s inclusion list: if the contract says the dishwasher and all light fittings are included, check they’re there. Ensure no new damage has occurred (e.g. movers haven’t knocked a hole in the wall). Test appliances, taps, and lights one more time. If something is seriously amiss, alert your conveyancer immediately – issues can be addressed by delaying settlement or negotiating a remedy, but this is rare. Usually, all is well, and you proceed.

Settlement Day: On the settlement date specified, your conveyancer and bank, along with the seller’s side, will meet (nowadays this often happens electronically via a platform like PEXA). They will exchange the necessary documents and funds. Your lender will draw down the loan (paying the amount to the seller’s side) and you’ll pay your share as well. The title will be updated with your name (and the bank’s mortgage). You typically do not need to attend settlement in person – your representatives handle it. Once settlement is completed, your conveyancer will confirm with you that you are now the owner. Congratulations! You can collect the keys to your new home, usually from the real estate agent. Make sure to also collect any garage remotes, security codes, or instruction manuals the seller left.

After settlement, there are a few loose ends to mind: the land transfer duty (stamp duty) must be paid (your conveyancer usually handles this with the settlement funds – for first-home exemptions, they ensure the paperwork was lodged to waive it). If you benefited from a first-home grant, ensure you meet the occupancy requirements going forward. Your council and utility companies will be notified of the change of ownership, but it’s wise to follow up and ensure all bills (council rates, water, strata) are now coming to you. Finally, consider changing the locks of your new home for peace of mind (you never know who might have an old spare key).

The process from offer to settlement can feel complicated, but your conveyancer and lender will guide much of it. Don’t hesitate to ask them questions if anything is unclear – that’s what you pay them for. By being organized and responsive during this period, you’ll help ensure a smooth handover of the property. Soon enough, you’ll be unlocking the door to your very own home for the first time!

Walking into your first home is a moment of triumph – but homeownership also comes with ongoing responsibilities and costs that you might not have experienced as a renter. Being prepared for these will help you protect your investment and avoid financial strain. Here’s what to keep in mind now that you’re officially a homeowner:

• Mortgage Repayments: Your home loan will likely be the biggest bill in your life for years to come. Make sure you budget for your mortgage payments just like you did for rent – set up automatic transfers to ensure you never miss a due date (missing payments can harm your credit and incur fees). If you took a variable rate loan, stay alert to interest rate changes. Rates can move, and even a 0.5% increase can add hundreds to your monthly payment. A good tip is to continue living on a “rent budget” if your new mortgage is higher than what you used to pay in rent, gradually adjusting your lifestyle. If you have spare cash, consider keeping an offset account or making occasional extra payments to get ahead; building a buffer of a few months’ worth of repayments in your loan or offset can provide peace of mind. On the flip side, don’t overextend on renovations or new furniture via credit right away – get used to your baseline housing costs first.
• Council Rates & Utilities: As a homeowner, you’ll now receive council rates notices (property tax), usually quarterly. The amount varies by council and property value – it could be a couple thousand dollars per year (often more for houses than apartments). Budget around $1,500–$3,000 annually depending on your area. Similarly, you’ll be paying water service charges (even if you don’t use much water, there’s a fixed fee for connection to the supply, often charged by the quarter). If your property has its own water meter, you pay for usage too. These used to be wrapped into your rent, but now it’s on you. Keep in mind, these bills can often be smoothed out – e.g. you might be able to pay monthly. Utility bills (electricity, gas, internet) will also now all be in your name. When moving in, take the opportunity to shop around for good energy plans and consider energy efficiency improvements (LED bulbs, efficient appliances) to keep those bills manageable.
• Strata or Body Corporate Fees (if applicable): If your first home is a unit, apartment, or townhouse in a complex, you’ll have ongoing strata fees (also called body corporate or owners corporation fees). These typically cover building insurance, maintenance of common areas, and contributions to a sinking fund for future repairs. They can range widely – perhaps $800 per quarter for a small apartment block with minimal facilities, up to several thousand a quarter for buildings with elevators, gyms, pools, etc. Make sure you know what your fees are and when they’re due. Always budget a little extra for strata special levies; occasionally owners vote to raise additional funds for major works (like repainting the building or roof repairs). If you’re in a strata property, also be a responsible member – attend AGMs if you can or at least read the minutes, since decisions there will affect your living environment and wallet.
• Home Maintenance and Repairs: Unlike renting, if something breaks, you are the “landlord” now. There’s no calling the owner or agent to fix a leaky tap or a broken heater – it’s on you to either DIY or hire a tradie. It’s therefore crucial to set aside money for ongoing maintenance. A common guideline is to budget about 1–2% of your property’s value per year for maintenance and repairs, although actual costs vary (older homes or houses with yards may need more, newer or smaller homes less). For instance, on a $600,000 property, plan for ~$6,000/year in upkeep on average. In some years you’ll spend much less, and in others an unexpected issue (like a hot water system replacement or a roof leak) might cost a few thousand. Regular maintenance can also save money long-term – clean your gutters, service your heating/cooling systems, and attend to minor issues before they become major. If you’re handy, you can DIY some tasks (painting, basic landscaping), but know your limits – leave electrical, plumbing, or structural work to professionals for safety. It’s a smart idea to keep an emergency fund specifically for home repairs so that when (not if) something goes wrong, you’re financially ready. Consider this fund part of the true cost of owning a home, not an optional extra.
• Insurance: You hopefully started a building insurance policy from settlement. Keep that policy updated and consider paying annually to save on installments. If you made significant improvements (like a renovation or added expensive fixtures), update the insured amount. Additionally, now that you have a home and maybe more stuff, contents insurance is important to protect against theft or damage to your belongings. Sometimes you can get building and contents insurance packaged together. Shop around each year – loyalty to one insurer often doesn’t pay, as they can hike premiums; comparing quotes could save you money. Also, if you’re in a strata property, the building insurance is handled via strata fees, but you still need contents insurance for inside your unit (and sometimes a separate policy for things like internal fixtures – check what the strata’s building insurance covers).
• Security and Utilities Setup: As a new homeowner, ensure you handle some one-off tasks: change the locks or rekey them (previous owners, their friends, or tradespeople may have copies of old keys). Install any security system or at least smoke alarms (usually required by law to have working smoke detectors). Familiarize yourself with the main water shutoff, the electrical fuse box, gas valve – in an emergency you’ll want to know how to turn things off. For utilities, take initial meter readings when you move in to ensure the first bills are accurate. And if your property has any appliances or systems unfamiliar to you (like an irrigation system, pool equipment, solar panels), ask the previous owner or property manager for a quick rundown or manuals.
• Community and Responsibilities: Owning a home means you’re part of a community of homeowners. Get to know your neighbors – good neighbors can watch out for each other’s properties and make the neighborhood more enjoyable. Be mindful of local council rules (for instance, on parking, noise, pets, waste disposal). If you have a yard, you’ll need to maintain it per council guidelines (no overgrown lawns attracting vermin, etc.). Owning property also means thinking about the long term: keep documents like warranties for appliances or any improvements, and maintain a folder (physical or digital) for your mortgage, rates notices, and insurance policies. It sounds tedious, but being organized will pay off if you ever need to make a claim or when eventually selling the house.

Transitioning from renting to owning is a learning curve. You may find the first year full of “firsts” – first time mowing a lawn, first time paying a water bill, first time fixing a broken toilet. Embrace the learning process and don’t be afraid to ask for advice. There are plenty of online forums and resources for new homeowners (and your parents or experienced friends will likely be happy to share tips). Yes, owning a home costs more than just the mortgage – but you’re also building equity and have the freedom to truly make the space your own. With sound budgeting and proactive maintenance, you’ll keep your home in great shape and enjoy the journey of homeownership.

Becoming a first homeowner in Australia in 2025 is no small feat – it requires planning, perseverance, and sometimes creative use of the resources at your disposal. We’ve covered a lot of ground, but the bottom line is that knowledge and preparation are your best allies. By understanding the market challenges (and not letting them discourage you), getting your finances in order, and taking advantage of grants and schemes, you’ve already put yourself ahead of the pack. From there, being thorough in your property search and cautious but decisive in the purchase process will carry you to the finish line of settlement day. And once you have those keys, knowing what comes next will help you thrive as a new homeowner.

Remember, you’re not alone in this process. Seek advice from professionals – mortgage brokers, buyer’s agents, solicitors – whenever you feel out of your depth. Utilize community resources and platforms. For example, SaleMate’s community-driven real estate platform is built to support buyers like you with transparent information and a helping hand at each step. Whether it’s answering a question in a forum or simplifying the offer process, don’t hesitate to leverage such tools. The Australian government, too, is continually updating policies to assist first-home buyers (as seen with the expanded Home Guarantee Scheme and other measures), so staying informed on the latest developments can open new opportunities – sometimes sooner than you expect.

Finally, take a moment to appreciate how far you’ve come in the journey once you do become a homeowner. It’s a significant milestone and a cornerstone for building your future wealth and security. There will be challenges – interest rates might climb, the hot water system might fail on a Sunday morning, the fence might need fixing – but these are all manageable with the right mindset and preparation. You’ve navigated worse (you just bought a house!). With each passing year, your equity will likely grow, your knowledge will deepen, and that initial stretch to get into the market will start to pay off.

In a country where property has long been a key to financial stability, you’ve taken the first big step. Equip yourself with the information, ask for help when needed, and embrace the experience of owning your first home. It’s an exciting new chapter – one where you call the shots and literally put a roof over your head that’s yours. Congratulations on making it this far, and here’s to a bright future in your new home!